New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-12-08
1EICING THE MONEY THATHARPER Used.
FRANK VI. HAYESS ACCOUNT OF THE DEALINGS
WITH TIE NEw-YORK BANKS.

WITH THE NEw-YORK BANKS
CINCINNATI. Dec. The Harper trial did not reach
the close OF the Governments testimony to day as was
expected but the same curOus crowds gathered In all
available places Frank NJ. Hayes. the expert who has
been sent here ly hc Government 10 assist In the prose
ruion of the case. Is a nervous looking young man
with fierce mustache, short cropped hair piercing
eyes and large mouth. He said in answer TO qucs-
tons that lac expert accountant, that he had
hai about years experience in banks, and had
filed all positions up TO assistant cashier He had
also been familiar with brokers' business by a two
years connection with firm in TittSburg whose bust
reached into the millions lie had examined Tor
the Government the books OF the Penn National Bank
OF Ptisburg. where some millions OF dollars were In
vovcd. lie had made careful examination OF the
books Of the Fidelity National Bank Of the First Ma
toual Iank or New York and OF the Chemical National
Iaa 20 far as they relate to dealings with Harper and
TIE Fidelity Bank He hal also examined the accounts
Of Irwin. Greens Co. and {. !. kcINhaw a Co., Win
reference to their dealings with Harper and the Fdel
fly Eatona Bank.
lie began by saving tina. ne found charge tickets at
the Fidelity one Of 5000. 900 credit to r. L. HafI",
and charge against the First National Bank Of New
York and ano her Of the same kind. and third for
100000. Then on March II there was one clcdtlng
Harpcr with 100000 and charging the Chemical
National Bank Of Ncw-York with the same amount.
From his examination of the books Of the First Nd-
iipual L,nk he found there were nJ such credits or
charges a1 no money subject to the draft Of tie Fl
deity Bank In the Chemical National Bank the
Fidelity lad credit, by reason Of a certificate Of de-
l,r forwarded to them, but that certificate was not
entered on the books Of the Fidelity Bank The First
National had two accounts with the Fidelity one OF
them showed credits to the Fidelity, the other over
dats By reference to both It appears that tnc IL
dc!ay really had TO It's credit on March l. lr77 only
$1,000 ore Of the accounts at that time showed a
credit oi 500 900 the other showed Oyerdrafts to the
anonm of 100000. On April these two accounts
wee consolidated when there g. $50 to the credit
Of %, .d,y IN the books of tho First National Bank
Of New Y0i. On April 80 there was TO The credit Of
tie Ildclty National Bank 100000 on the books Of
the First National Of Ncw-York, BY reason Of two
certificates Of deposit FOR 100000 each but these Ger
Iacdc, Of deposit were not entered cn the Fidelity
IO0bs. and there was nothing their books TO show
This outstanding Indebtedness. Previous to this time
Harper Was credited with 100000, and thus the books
Oi the TWO banks made 10 agree
Tuning lica 10 the Chemical National Bank Of New
YOrk he said us boOls showed tnat that the Fidelity
National u1r had csedi: of S3oO,oo0 marked lo"n'
alcr,in thai the Fidelity had borrowed that amount,
but tc idclys books therc is nothing 10 Indicate
issued, ana nc stub , marked cancelled
Mr Haze, then traced from day 10 day how HlrpcTs
persons Interested in tls whea, deal Tho showing
va, minute. and be followed out the entire 100000
IL THIS way. showing that Of this sum there remained
10 b, credit on March u only T45,92l 20 .-..,.
Recurring 10 the First National; he said The craft
Naoaa ic sdoooo o II Tbe III T, % NatSna al never paid
sIs1S nnl ~ Harper account N ne Ilac'y - -
,A"erd AluI II with 100000, ana this made the
sgohs , sgrec Two drafts drawn April - and 30 for
~. si.upO each were not cnorcd on the Fidelity books
1ugk on MAY T.
c, heSes then took mp the accounts Of irwin.
w., ~ & o. and stated that the Fidelity bOols did
70 ~, 10y oiS such credits to thcir account Is The lei
~ 1rI i T!nTe sent them Indicated. Irwin, Groom 3
go t,'lt'u hoyt with $4,000. All this, except
So s. yv " as drawn ont by Ilauci's checks. There
Ui e,lcrs Of credit TO Iioyt amounting 10
rc''",' NY, June lO 10 Il. G.. j. Ker-hdw * CO.
%elc advised by four letters Of credit tha, IIoy had
ar,pnNcd 10 ther credit s2AO 600. Kcrshaw & CO.'S
DOORS credit Harper with four amounts of $4,000
'"r cCre, pohains IN date to tho letters Of credit.
.lHe witness also told Of transfer OF credits the
american Exchange Bank amounting TO SlO3 600
un % ponded TO check by Harper for 100000
NcLd on 10 show from the books that all Of this
si i1c was absorbed In tho wheat deal There was
20 IN he Fidelity Bank
u.m! ms witness was laying bare Ly reference TO
uIor own oD0ks all these startling irregularities.
bs bdT amused himself By chatting and laughing with
as VIZ ~. tnu ner sister, or writing notes and passing
mem to friends seated within reach.